Economic crisis
Ifo lowers the economic forecast – more unemployed are expected
The German economy has been stagnating for years, industry is trapped in the crisis. Without a determined action by the Federal Government, paralysis will continue, warns the IFO Institute.
The IFO Institute has reduced its economic forecast for the German economy, which has been crushing for years. The revitalization expected in 2026 will also be weaker than assumed after the new prediction of the Munich economists.
This year the institute expects mini growth of 0.2 percent, which would be 0.1 percent less than in summer. According to the IFO calculation, the number of unemployed could increase by 155,000, the unemployment rate to 6.3 percent. The researchers reduced their forecast for the German economy in 2026 by 0.2 points to 1.3 percent. Europe’s largest economy has shrunk in the past two years.
According to the economists, whether Germany is permanently finding a way out of the economic weakness that has been ongoing for years depends largely on the Berlin coalition: “The Federal Government’s economic policy measures should have an effect,” said IFO economy head Timo Wollmershäuser. In the event of consistent and convincing implementation, financial policy can help to lift the German economy out of the crisis. “However, if it remains with the economic political standstill, there are further years of economic paralysis and the erosion of the company location.”
dpa
Source: Stern
